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<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
/X/ Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarter ended July 31, 1996.
/ / Transition report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from _____________ to_________________.
Commission File No.: 0-17414
ADVANTAGE LIFE PRODUCTS, INC.
- --------------------------------------------------------------------------------
(Name of Small Business Issuer in Its Charter)
Delaware 33-0213733
- ---------------------------------- ---------------------------------
(State or other jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
13902 N. Dale Mabry Highway, Suite 119
Tampa, Florida 33618
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(813) 969-2002
- --------------------------------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
Securities registered under Section 12(b) of the Exchange Act:
Name of each Exchange
Title of Each Class on Which Registered
- ------------------------------- ---------------------------
Securities registered under Section 12(g) of the Exchange Act:
Common Stock
- --------------------------------------------------------------------------------
(Title of Class)
Check whether the issuer (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
<PAGE> 2
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicated by check mark whether the registrant filed all documents and reports
required to be filed by Section 12, 13 or 15 (d) of the Exchange Act of 1934
subsequent to the distribution of securities under a plan confirmed by a court.
YES ______ NO ______
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares outstanding of the issuer's common stock, as of
September 9, 1996, was 6,076,479 shares.1
__________________________________
/ Assumes that George Carras, a former of the Company, grants his
approval to the issuance of certain shares of the Company's common stock.
"Executive Compensation".
<PAGE> 3
INDEX
<TABLE>
<CAPTION>
Page
Number
-------
<S> <C>
Part I - Financial Information.
Item 1. Financial Statements.
Consolidated Balance Sheets as of July 31, 1996 (Unaudited) 1
and April 30, 1996.
Consolidated Statements of Operations, for the three months ended
July 31, 1996 (Unaudited) and the year ended April 30, 1996. 2
Consolidated Statements of Cash Flows, for the three months ended
July 31, 1996 (Unaudited) and the year ended April 30, 1996. 3
Notes to Consolidated Financial Statements.
(No significant changes since the 10-K.)
Item 2. Management's Discussion and Analysis of Financial
Conditions and Results of Operations.
(No significant changes since the10-K.)
Part II - OTHER INFORMATION
Item 1. Legal Prodeedings.
(No significant changes since the10-K.)
Item 2. Changes in Securities.
(None)
Item 3. Defaults Upon Senior Securities.
(None)
Item 4. Submission of Matters to a Vote of
Security Holders.
(None)
Item 5. Other Information.
(None)
Item 6. Exhibits and Reports on Form 8-K.
(None)
SIGNATURES Exhibits
27 Financial Data Schedule (For SEC use only)
</TABLE>
<PAGE> 4
ADVANTAGE LIFE PRODUCTS INC., SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited)
ASSETS April 30, 1996 July 31, 1996
-------------- -------------
<S> <C> <C>
Current Assets:
Cash $ 204,171 $ 115,489
Accounts Receivable, less allowance for uncollectible
accounts of $175,179 in 1996, $175,179 at July 31, 1996 220,082 359,296
Income tax receivable 87,214 --
Note receivable from stockholder, net of allowance of $185,000 25,000 25,000
Inventory 34,274 34,293
Other current assets 40,557 43,579
----------- -----------
Total current assets 611,298 577,657
----------- -----------
Property & Equipment:
Property & equipment, net of accumulated
depreciation of $318,693 in 1996, $475,546 in first quarter 582,423 526,666
----------- -----------
Other Assets:
Goodwill, net of accumulated amortization of $1,686,890 1,975,691 1,853,822
Note receivable, related party 15,000 15,000
Deferred compensation 900,000 900,000
Other 3,563 --
----------- -----------
Total other assets 2,894,254 2,768,822
----------- -----------
$4,087,975 $ 3,873,145
========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities :
Notes payable $ 376,625 $ 376,625
Accounts payable 1,375,407 1,908,369
Accrued product returns -- 20,224
Taxes payable -- 19,468
Other accrued expenses 793,787 164,610
Note payable, current portion 22,400 22,400
----------- -----------
Total current liabilities 2,568,219 2,511,696
----------- -----------
Non-current Liabilities:
Note Payable, long-term 33,816 33,260
Due to stockholder 7,942
----------- -----------
Total long term debt 33,816 41,202
----------- -----------
2,602,035 2,552,898
----------- -----------
Stockholder's Equity:
Common stock, $0.16 par value, 25,000,000 shares authorized;
issued and outstanding, 296,476 in 1996 and 327,989 at July 31, 1996 47,437 47,437
Additional paid-in capital 12,165,455 12,165,455
Accumulated deficit (7,951,952) (8,117,645)
----------- -----------
Subtotal 4,260,940 4,095,247
Less Common stock subscribed (2,775,000) (2,775,000)
----------- -----------
Total Stockholder's equity 1,485,940 1,320,247
----------- -----------
$ 4,087,975 $ 3,873,145
=========== ===========
</TABLE>
-1-
<PAGE> 5
ADVANTAGE LIFE PRODUCTS, INC. SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
(Unaudited)
Quarter
Year ended Ended
April 30, 1996 July 31, 1996
--------------- ----------------
<S> <C> <C>
REVENUES:
Sales $ 5,530,245 $ 104,401
Returns and allowances (807,042) (16,973)
----------- ---------
Total Revenues 4,723,203 87,428
----------- ---------
COSTS AND EXPENSES :
Cost of goods sold 2,894,693 34,694
Selling, general, and administrative 4,963,715 217,298
----------- ---------
Total costs and expenses 7,858,408 251,992
----------- ---------
LOSS FROM OPERATIONS (3,135,205) (164,564)
----------- ---------
OTHER INCOME (EXPENSE):
Loss on disposition of assets (2,727)
Other income (1,099,892)
Write-off of goodwill (1,000,000)
----------- ---------
Total other income (expense) (2,099,892) (2,727)
----------- ---------
LOSS BEFORE INCOME TAXES (5,235,097) (167,291)
INCOME TAX PROVISION 800
----------- ---------
NET LOSS $(5,235,897) $(167,291)
=========== =========
LOSS PER COMMON SHARE $(21.30) $(0.58)
=========== =========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 245,807 288,278
=========== =========
-2-
</TABLE>
<PAGE> 6
ADVANTAGE LIFE PRODUCTS, INC. SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Year For the Quarter
Ended Ended
April 30, 1996 July 31, 1996
-------------- ---------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(5,235,097) $ (167,291)
Adjustments to reconcile net
loss to net cash used
in operating activities:
Depreciation and amortization 1,224,471 167,527
Provision (benefit) for allowance
for uncollectible 248,025
Non-cash charges & other 5,132,027
Changes in operating assets and liabilities:
Accounts receivable (139,243) (52,000)
Inventory 146,575 (19)
Prepaid expenses and other (60,962) 541
Other accrued expenses 17,209 (589,485)
Note payable (370,000)
Accounts payable (895,296) 532,962
----------- ----------
Net cash (used in) operating activities 67,709 (107,765)
----------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Note receivable from stockholder 15,000
Cash received from sale of stock 200,000
Capital expenditures (152,233)
----------- ----------
Net cash provided by investing activities 62,767 0
----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payment on note payable (49,899) (556)
Disposition of equipment 11,697
Due to stockholder 7,942
Issuance of note payable 40,056
----------- ----------
Net cash provided by financing activities (9,843) 19,083
----------- ----------
NET CHANGE IN CASH 120,633 (88,682)
CASH, BEGINNING OF YEAR, QUARTER 83,538 204,171
----------- ----------
CASH, END OF YEAR, QUARTER $ 204,171 $ 115,489
========== =========
</TABLE>
-3-
<PAGE> 7
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this Report to be signed on its behalf by the undersigned, thereunto
duly authorized.
ADVANTAGE LIFE PRODUCTS, INC.
Dated: October 21, 1996 By: /s/ Alan S. Lipstein
--------------------------------
Alan S. Lipstein, President
In accordance with the Exchange Act, this Report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
Signature Capacity Date
--------- -------- ----
/s/ Alan S. Lipstein
-------------------------- President, Chief Executive
Alan S. Lipstein Officer, Chief Financial
and Accounting Officer and
Director
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-START> MAY-01-1996
<PERIOD-END> JUL-31-1996
<CASH> 115,489
<SECURITIES> 0
<RECEIVABLES> 384,296
<ALLOWANCES> 0
<INVENTORY> 34,293
<CURRENT-ASSETS> 577,657
<PP&E> 871,457
<DEPRECIATION> 344,791
<TOTAL-ASSETS> 3,873,145
<CURRENT-LIABILITIES> 2,511,696
<BONDS> 0
0
0
<COMMON> 47,437
<OTHER-SE> 1,272,810
<TOTAL-LIABILITY-AND-EQUITY> 3,873,145
<SALES> 87,428
<TOTAL-REVENUES> 87,428
<CGS> 34,694
<TOTAL-COSTS> 251,992
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (167,291)
<INCOME-TAX> 0
<INCOME-CONTINUING> (167,291)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (167,291)
<EPS-PRIMARY> 0
<EPS-DILUTED> (0.58)
</TABLE>
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